Shenhua readies for 2005’s largest IPO
China's largest coal producer, China Shenhua Energy Co., is getting prepared for a $3.6 billion initial public offering (IPO) on the Hong Kong Stock Exchange. The IPO, slated for June 14 or 15, will be the world's largest in 2005. With the offering, the company will list 17% (3.06 billion shares) of its stake on the exchange with a per-share face value of between HK$7.25 and HK$9.25. The company expects great interest in the IPO because of the high demand for electricity in China, and thus for the raw material provided by the company. Furthermore, the high prices of coking coal will create added interest. Shenhua plans to increase its capacity by utilizing the money to be obtained from the listing. The Chinese government owns approximately $260 billion of Shenhua's stocks. The government had previously disclosed its intention to list many public companies this year.